Security Deposit Law
What New Hampshire landlords must do with security deposits — the cap, interest, return deadline, account rules, and penalties — with citations to the statute itself.
Verified as of June 11, 2026
This page is general information, not legal advice. Statutes change — verify with the cited sources or an attorney.
Deposit cap
One month's rent or $100, whichever is greater.
Interest
Yes, if the deposit is held one year or longer — at the regular savings account rate of the institution holding it.
Return deadline
Return the deposit, plus any interest due, within 30 days of the end of the tenancy.
RSA 540-A:6, I(a) bars a landlord from demanding or receiving a security deposit 'in an amount or value in excess of one month's rent or $100, whichever is greater.' A second sentence covers leases with quarterly or less frequent rent: such a lease is allowed, 'provided, however, that the security deposit received in addition to the initial rent payment may not exceed the equivalent of one month's rent.' Note the cap bites broadly because RSA 540-A:5, II defines 'security deposit' as all funds in excess of the monthly rent transferred from tenant to landlord for any purpose.
Under RSA 540-A:6, IV(a), a landlord who holds a deposit 'for a period of one year or longer shall pay to the tenant interest on the deposit at a rate equal to the interest rate paid on regular savings accounts' in the New Hampshire bank, savings and loan association, or credit union where it is deposited. If deposits are mingled in a single trust account, the landlord pays 'the actual interest earned on such account proportionately to each tenant.' Under IV(c), a tenant may request the accrued interest every 3 years, 30 days before the expiration of that year's tenancy, and the landlord must comply within 15 days of the expiration of that year's tenancy.
RSA 540-A:7, I requires return of the deposit and any interest due 'within 30 days from the termination of the tenancy' (except where the tenant already drew interest under RSA 540-A:6, IV(c)). The landlord may deduct: (1) costs of repairing damage beyond reasonable wear and tear, with a written, itemized list indicating with particularity the repairs needed plus satisfactory evidence (receipts, labor estimates, bills, or invoices) that repairs have been or will be completed; (2) unpaid rent; (3) other lawful charges due under the lease that remain unpaid; and (4) the tenant's lease-assigned share of any INCREASE in real estate taxes levied against the property and becoming due and payable during the lease term — not real estate taxes generally. Claims for rent, charges, or the tax-increase share require a written, itemized list indicating with particularity the period for which the claim is made.
Deposits 'continue to be the money of the tenant and shall be held in trust' and 'shall not be mingled with the personal moneys or become an asset of the landlord' until RSA 540-A:7 is satisfied (RSA 540-A:6, II(a)). A landlord may pool all tenants' deposits in a single account held in trust at a New Hampshire-chartered bank, savings and loan association, or credit union (II(b)). Alternatively, under II(c) the landlord is exempt from (a) and (b) by posting a bond 'written by a company located in New Hampshire' with the clerk of the city or town where the premises are located, 'in an amount equivalent to the total value of a security deposit held by the landlord on property in that city or town.'
A landlord who violates the cap, trust/account, or sale-transfer rules (RSA 540-A:6, I, II, or III) 'shall be deemed to have violated RSA 358-A:2,' New Hampshire's Consumer Protection Act (RSA 540-A:8, I(a)). A landlord who fails to pay interest or return the deposit as RSA 540-A:6, IV or 540-A:7 require is liable 'in damages in an amount equal to twice the sum of the amount of the security deposit plus any interest due under this subdivision, less any payments made and any charges owing for damages, unpaid rent, or share of real estate taxes as specified in RSA 540-A:7' (RSA 540-A:8, I(b)) — i.e., lawful deductions and amounts already paid reduce the doubling base. There is a safe harbor: no liability if non-compliance is due to the tenant's failure to give a new address at move-out, and deposits plus interest unclaimed 6 months after the tenancy ends become the landlord's property, absent fraud (RSA 540-A:8, II).
New Hampshire's security deposit rules are statewide (RSA 540-A:5 through 540-A:8). No municipal security-deposit ordinance was identified for Manchester, Nashua, Concord, or any other New Hampshire municipality; the statute itself involves municipalities only through the optional bond posted with the city or town clerk under RSA 540-A:6, II(c).
On receiving a deposit, the landlord must 'forthwith' deliver a signed receipt stating the amount and where the deposit (or the RSA 540-A:6, II(c) bond) will be held, and tell the tenant that conditions needing repair should be noted on the receipt or given in writing within 5 days of occupancy (RSA 540-A:6, I(b)). No receipt is required when the tenant pays by personal check, bank check, or a government/nonprofit agency check — but I(c) adds that 'regardless of whether or not a receipt is required, the landlord shall provide written notice to the tenant that a written list of conditions in the rental unit in need of repair or correction, if any, should be given to the landlord within 5 days of occupancy.'
RSA 540-A:8, III: 'Any provision in any lease or rental agreement by which the tenant is purported to waive any of his rights under this subdivision, except as provided in RSA 540-A:6, III(d), shall be void.' The III(d) exception is narrow: it permits an inconsistent landlord-tenant agreement only as to RSA 540-A:6, III(c) — i.e., who bears liability for returning the deposit after it is turned over to a grantee, assignee, foreclosure purchaser, or receiver when the property changes hands. Every other deposit right is non-waivable.
A landlord holding deposits must turn them over at delivery of the deed or instrument of assignment, or within 5 days thereafter (or within 5 days after a receiver qualifies), to the grantee, assignee, receiver, or foreclosure purchaser (RSA 540-A:6, III(a)). The landlord must notify each tenant 'by registered or certified mail of such turning over, including the name and address' of whoever now holds the deposit (III(b)); doing both relieves the seller of repayment liability and shifts it to the transferee (III(c)).
The deposit subdivision does not apply to a person who rents a single-family residence and owns no other rental property, or who rents units in an owner-occupied building of 5 units or less — 'except for any individual unit in such building which is occupied by a person or persons 60 years of age or older' (RSA 540-A:5, I). Exempt landlords still face ordinary contract law, so following the statute is the safer default.
On request, the landlord must disclose the name of the bank, savings and loan, or credit union holding the deposit, the account number, the amount on deposit, and the interest rate, and must 'allow the tenant to examine his security deposit records' (RSA 540-A:6, IV(b)). Keep per-tenant ledgers so a pooled trust account can answer these requests.
RSA 540-A:5, II defines a security deposit as 'all funds in excess of the monthly rent which are transferred from the tenant to the landlord for any purpose.' Pet deposits, key deposits, and prepaid last month's rent all count toward the one-month/$100 cap and carry the trust, interest, and return obligations.
RSA 540-A:7, II only permits deducting the share of 'any increase in real estate taxes levied against the property and becoming due and payable during the term of the lease' that the lease requires the tenant to pay. An over-deduction is non-compliance with RSA 540-A:7, exposing the landlord to double damages under RSA 540-A:8, I(b).
Liability for twice the deposit plus any interest due, less any payments made and any charges owing for damages, unpaid rent, or share of real estate taxes as specified in RSA 540-A:7 (RSA 540-A:8, I(b)).
Violating RSA 540-A:6, II is deemed a violation of RSA 358-A:2, the Consumer Protection Act, which carries its own remedies beyond the deposit statute (RSA 540-A:8, I(a)).
All funds in excess of the monthly rent count as 'security deposit' (RSA 540-A:5, II), so the total cannot exceed one month's rent or $100, whichever is greater; exceeding the cap is a deemed Consumer Protection Act violation (RSA 540-A:8, I(a)).
The seller stays on the hook for repaying deposits (relief from liability under RSA 540-A:6, III(c) requires the turnover plus notice), and non-compliance with RSA 540-A:6, III is a deemed Consumer Protection Act violation (RSA 540-A:8, I(a)).
One month's rent or $100, whichever is greater (RSA 540-A:6, I(a)). The cap is strict because 'security deposit' means all funds in excess of the monthly rent transferred for any purpose — pet deposits and prepaid last month's rent count toward it. For leases with quarterly or less frequent rent, the deposit collected in addition to the initial rent payment still may not exceed one month's rent.
30 days from the termination of the tenancy, including any interest due (RSA 540-A:7, I). Deductions for damage beyond reasonable wear and tear require a written, itemized list describing each repair with particularity plus satisfactory evidence such as receipts, labor estimates, bills, or invoices.
Yes, if you hold the deposit for one year or longer — at the rate paid on regular savings accounts at the New Hampshire bank, savings and loan, or credit union where it sits (RSA 540-A:6, IV(a)). Tenants may also request accrued interest every 3 years, 30 days before that tenancy year expires, and you must pay it within 15 days of that year's expiration.
Repair costs for damage beyond reasonable wear and tear, unpaid rent, other lawful unpaid charges under the lease, and the tenant's lease-assigned share of any increase in real estate taxes that became due during the lease term (RSA 540-A:7). Every deduction needs a written, itemized list — for damage, with particularized repairs and evidence of cost; for rent, charges, or the tax-increase share, with the period the claim covers.
Double damages: twice the deposit plus any interest due, less any payments made and any charges owing for damages, unpaid rent, or the tax-increase share specified in RSA 540-A:7 (RSA 540-A:8, I(b)). Cap, trust-account, and sale-transfer violations are separately deemed Consumer Protection Act (RSA 358-A:2) violations. There's a safe harbor if the tenant never gave you a forwarding address, and unclaimed deposits become yours 6 months after the tenancy ends, absent fraud.
Not always. A person renting a single-family residence who owns no other rental property, or renting units in an owner-occupied building of 5 units or less, is exempt — except for any unit in that building occupied by someone 60 or older (RSA 540-A:5, I). Exempt landlords should still document deposits carefully, since ordinary contract claims remain available to tenants.
This page is general information, not legal advice. Statutes change — verify with the cited sources or an attorney.
Statute facts on this page were verified against the cited official sources on June 11, 2026.
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